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Supply chain digitalization and corporate ESG performance

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  • Siqian Chen
  • Xin Leng
  • Kun Luo

Abstract

In the wave of the digital economy, supply chain digitalization is a visual manifestation of businesses integrating digital technology into their production and operations. It helps companies enhance operational efficiency and competitiveness, gradually becoming a key driver for corporate sustainable development. This study selects Chinese A‐share listed companies from 2012 to 2021 as research samples and empirically tests the impact of supply chain digitalization on corporate environment (E), social responsibility (S), and corporate governance (G) (ESG) performance. We find that supply chain digitalization significantly promotes corporate ESG performance, which is achieved by reducing information asymmetry and easing financing constraints. The positive effect of supply chain digitalization on corporate ESG performance varies significantly among different enterprises, with more prominent effects in mature enterprises, those at both ends of the industrial chain, and those located in regions with lower degree of marketization. Further analysis reveals that supply chain digitalization brings about an innovation effect for enterprises. These findings enrich the research on supply chain digitalization and corporate ESG performance, providing valuable insights for promoting supply‐side structural reforms and corporate sustainable development.

Suggested Citation

  • Siqian Chen & Xin Leng & Kun Luo, 2024. "Supply chain digitalization and corporate ESG performance," American Journal of Economics and Sociology, Wiley Blackwell, vol. 83(4), pages 855-881, September.
    • Handle: RePEc:bla:ajecsc:v:83:y:2024:i:4:p:855-881
    DOI: 10.1111/ajes.12596
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    References listed on IDEAS

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